Sole proprietorship
Sole proprietorship (or, simply, proprietorship) is a type of business organization that has one owner who assumes unlimited liability. That means that this owner is personally liable for paying the business' debt.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Sole proprietorship. A type of business organization that has one owner. This owner is personally liable for paying the business' debt.
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Proprietorship. A business owned by one individual.
Related concepts
- Bookkeeping. Recording, filing, and retrieving of financial data, as well as producing those financial reports that are required by laws.
